Bloomberg Unveils New Liquidity Management Tool

Photo: Jeff Patterson Bloomberg has unveiled a new liquidity risk assessment tool (LQA), which aggregates its comprehensive data capabilities with machine learning techniques in a bid to ascertain what factors directly influence liquidity, according to a Bloomberg statement. LQA is derived from two pillars: Bloomberg’s data streams and quantitative models, as well as the application of machine learning techniques. The group’s foray into liquidity management is important for a host of venues and both retail and institutional players, given the sometimes less than transparent nature of certain markets, i.e. fixed income, among others. In particular, LQA utilizes such methods as machine learning techniques and cluster analysis to help identify and leverage transaction data as well as assist in liquidity risk analyses. As opposed to other liquidity assessment tools, LQA’s reliance…